Critical Metals Secures US$120M Backing for Greenland Rare Earths Project
Critical Metals Corp has landed a conditional US$120 million funding letter from the US Export-Import Bank to advance its Tanbreez rare earth project in Greenland, a move that could reshape Western critical minerals supply chains.
- Conditional US$120 million Letter of Interest from US Export-Import Bank
- Funding aimed at developing Tanbreez, one of the world’s largest rare earth deposits
- European Lithium holds 63% of Critical Metals, poised to benefit significantly
- Funding subject to due diligence, permitting, feasibility, and milestone achievements
- Strategic boost for Western supply chains in critical minerals and clean energy
A Major Financing Milestone
Critical Metals Corp (CRML), a key player in the critical minerals sector, has announced a conditional Letter of Interest (LoI) from the Export-Import Bank of the United States (EXIM) for a substantial US$120 million funding package. This non-dilutive financing is intended to support the development of the Tanbreez Project, located in Greenland, which is recognized as one of the world’s largest rare earth element deposits.
The LoI marks a significant step forward for Critical Metals and its majority shareholder, European Lithium Ltd, which holds approximately 63% of CRML’s shares. European Lithium stands to gain considerably from this development, with its investment in Critical Metals currently valued at around US$200 million (A$305 million) based on recent share prices.
Strategic Importance for Western Supply Chains
The Tanbreez Project’s rare earth elements are critical for a range of advanced technologies, including clean energy solutions, defense applications, and the lithium-ion battery supply chain. The US government’s backing through EXIM underscores the strategic priority of securing reliable sources of these minerals outside of traditional supply chains, which have been dominated by a few global players.
This funding aligns with broader geopolitical and economic efforts to strengthen Western access to critical minerals, reducing dependency risks and supporting the transition to greener technologies.
Conditions and Next Steps
While the LoI is a promising development, it remains non-binding and contingent on several key conditions. EXIM will conduct standard due diligence, including assessments of permitting, feasibility studies, environmental approvals, and securing contracts for construction, operations, and off-take agreements with creditworthy buyers.
The exact structure of the financing, whether as loans or other obligations, has yet to be determined, and the timeline for converting the LoI into a binding agreement remains uncertain. Both Critical Metals and European Lithium will need to meet these milestones to unlock the full funding package.
Broader Portfolio and Market Position
European Lithium’s portfolio extends beyond Greenland, with assets like the Wolfsberg Lithium Project in Austria, which is fully permitted and strategically positioned to supply the European market. This diversified approach enhances the company’s role in the critical minerals sector, complementing Critical Metals’ ambitions.
Market watchers will be keen to see how this financing milestone influences share prices and investor confidence, as well as how it fits into the evolving landscape of critical mineral supply chains globally.
Bottom Line?
As Critical Metals navigates due diligence and milestone hurdles, the Tanbreez Project could become a cornerstone of Western rare earth supply.
Questions in the middle?
- When might EXIM complete its due diligence and finalize the financing agreement?
- What will be the final structure and terms of the US$120 million funding package?
- How will this financing impact the timeline and scale of the Tanbreez Project’s development?
